A contract is a forecast of what could go wrong between two parties, written down while they still trust each other. We draft agreements with that in mind, and when a contract breaks down we help clients enforce it, get out of it or defend against claims under it.
Our work covers supply, works, lease, loan and leasing agreements, agency, distribution and franchise contracts, IP assignments and licences, as well as the many one-off contracts private clients sign. When we review the other side’s draft, you get a short list of the clauses that matter and what to ask for instead.
When a contract fails
Our work includes
- Drafting commercial and private contracts
- Review of contracts and identification of unfavourable terms
- Negotiation of terms
- Claims for damages and penalties for breach
- Defence against unfounded contractual claims
- Termination, rescission and settlement agreements
- Advice on non-performance, hardship and force majeure
Questions clients ask
Which contracts have no legal effect at all?
Those caught by Art. 26 of the Obligations and Contracts Act — for example, a contract that contradicts the law or good morals, circumvents the law, has an impossible subject, lacks real consent, form or cause, or the required form was not observed. A void contract has no legal effect, and nullity can be invoked at any time. In consumer contracts, unfair terms are also void — a frequent issue with quick loans.
What can I claim if the other party breaks the contract?
The losses that are a direct and immediate consequence of the breach, including lost profit. If a penalty was agreed, it is due without proving actual loss, though the court may reduce it if it is excessive. Interest for late payment of money runs from the moment the debtor is in default.
Can I simply stop performing if the other side does not pay?
Sometimes. In a two-sided contract you may withhold your own performance until the other party performs or offers to. Unilaterally treating the contract as ended without following the proper procedure, however, can put you in breach. Get advice before you stop.
